Chapter 4 – Concepts of Home Ownership

The 15th Edition of Modern Real Estate Practice in Texas was published in November 2011.  Updates to the content of Chapter 4 include:

Homeownership Rate:  According to the Census Bureau, the U.S. homeownership rate fell to 65.3% in third quarter 2012. 

The U.S. homeownership rate is about the same as Canada’s and is lower than Australia, Ireland, Spain, and Britain.  [Paul Wiseman, USA Today, August 18, 2010.]

Deductibility of Mortgage Insurance Premiums: Through the American Taxpayer Relief Act of 2012, Congress extended the deductibility of mortgage insurance premiums for the 2012 and 2013 tax years, subject to limitation.

Capital Gains Tax RatesCapital gains tax rates were modified by the American Taxpayer Relief Act of 2012.  The new capital gains tax rates for 2013 and future years are as follows: 
0% applies to capital gains income if a taxpayer is in the 10% and 15% tax brackets;
15% applies to capital gains income if a taxpayer is in the 25%, 28%, 33%, or 35% tax brackets; and
20% applies to capital gains income if a taxpayer is in the new 39.6% tax bracket.

Estate Tax Rates:  The American Taxpayer Relief Act of 2012 permanently extended the $5 million estate tax exemption and indexed it to inflation.  The new top tax rate for estates is 40%.

Updated:  April 15, 2013

 
Information has been obtained from sources believed to be reliable. However, because of the possibility of human or mechanical error, the authors and editors do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors or omissions or for the results obtained from use of such information. We assume no responsibility, express or implied, for errors or omissions of any kind, and no warranties of merchantability or fitness, express or implied, are made or to be implied, the product being accepted as is and with all faults. The information in this Website is not a final statement of the law on any given matter and does not substitute for experienced legal counsel.

© 2009 Cheryl Nance. All Rights Reserved.

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